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FINANCIAL INFORMATION"'Item 1. Financial Statements3'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES,'CONSOLIDATED BALANCE SHEET (Unaudited)''(In thousands, except for shares)^June 30,^December 31, 'Assets:'Cash and cash equivalents@@;'Interest-bearing deposits with financial institutions @No 'Trading assets <@ g@X 'Investment securities (Market value: $36,641 in 2002 and $38,937 in 2001) - Note 2 `@ @ 'Loans held for sale `s@ (@9 ' Loans and leases, net of unearned income - Note 3 ,S@ Lz@: ' Less: Allowance for loan and lease losses - Note 4    @ @'Servicing assets - Note 5@y@D@'Accounts receivable@ @!'Accrued interest receivableym'Premises and equipment5@@'Other assets @q@'Total assets@4n@+'Liabilities and Shareholders' Equity:'Deposits' Noninterest-bearinge@]@' Interest-bearing`@&@-' Certificates of deposit over $100,000@05@hƉ@h@$'Short-term borrowings - Note 6ع@`C@'Long-term debt - Note 7 @aW'Company-obligated mandatorily redeemable preferred securities of subsidiary trust'Other liabilitiesz@@p@'Total liabilitiesw@(@@,!'Commitments and contingencies - Note 8"'Minority interest""$$'Shareholders' equity%'Preferred stock, no par value - authorized 4,000,000 shares; issued none as of June 30, 2002 and 96,336 shares as of December 31, 2001&"-& ''Common stock, no par value - authorized 40,000,000 shares; issued 29,612,080 and 23,402,080 shares as of June 30, 2002 and December 31, 2001, respectively; including 1,879,658 and 2,096,947 shares in treasury as of June 30, 2002 and December 31, 2001, re*@* @ +'Additional paid-in capital++",'Deferred compensation,2,~}-'Accumulated other comprehensive loss, net of deferred income tax benefit of $83 and $216 in 2002 and 2001, respectively..v/'Retained earnings/@/@@0 Y@0@"1'Less treasury stock, at cost11 2'Total shareholders' equity2`Ǡ@2@<@03'Total liabilities and shareholders' equity3@34n@[5'The accompanying notes are an integral part of the consolidated financial statements.29'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES2:'CONSOLIDATED STATEMENT OF INCOME (Unaudited)*<'(In thousands, except for per share) <^For the Three Months Ended>^June 30,??@'Interest income:A'Loans and leasesA@A> @B'Loans held for saleBGBX @C'Trading accountCDCR;D'Investment securities: E'TaxableEE F'Tax-exemptFrFG'Federal funds soldGGpH'Total interest incomeH@H@@I'Interest expense:J'DepositsJlJJ @K'Short-term borrowingsKKH?L'Long-term debtL4L'M'Preferred securities distributionM%MN'Total interest expenseN @N @O'Net interest incomeOe@O;@)P'Provision for loan and lease lossesP8JPCQ'Net interest income after provision for loan and lease lossesQI@Q @R'Other income:S'Loan origination feesSuS0 @T'Gain from sales of loansT @TQ@U'Loan servicing feesU" @U{5V'Amortization and impairment of servicing assetsV1V$W'Net loan administration incomeWW>6/X'Gain on sale of mortgage servicing assetsXLXY'Trading lossesYY Z'OtherZ-@Z[@[@\'Other expense:]'Salaries]@]s@)^'Pension and other employee benefits^V>^9_'Office expense_V"_`'Premises and equipment`B` :a'Marketing and developmentaaJ b'Professional Feesbdb(  c'Otherc(]cgd@d@ e'Income before income taxeseee @ f'Provision for income taxesf'f4B%g'Income before minority interestgT>gjb1h'Minority interest in losses of subsidiarieshhZi'Net incomeid>id"k'Earnings per share: - Note 9 l'Basicll m'Dilutedmmn'Dividends per sharenyn[p'The accompanying notes are an integral part of the consolidated financial statements.2t'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES2u'CONSOLIDATED STATEMENT OF INCOME (Unaudited)'w^For the Six Months Ended June 30,*y'(In thousands, except for per share)yyz'Interest income:{'Loans and leases{@{b@|'Loans held for sale|0 @|@}'Trading account}( @}$s~'Investment securities: 'Taxable ^'Tax-exempt'Federal funds sold<'Total interest incomeO@w@'Interest expense:'Deposits @@'Short-term borrowings9~'Long-term debt  ''Preferred securities distributionLK9'Total interest expenseX@@'Net interest income@@)'Provision for loan and lease losses @ "C'Net interest income after provision for loan and lease losses6@@'Other income:'Loan origination fees& @l @'Gain from sales of loans@R@'Loan servicing feesr@ @5'Amortization and impairment of servicing assets* $'Net loan administration income8 v/'Gain on sale of mortgage servicing assetsK*-'Trading losses 'Other-@|@Y@'Other expense:'Salaries@ۤ@)'Pension and other employee benefitsj @Rn'Office expense8C;'Premises and equipmentʂ @t'Marketing and development >'Professional Fees( 'Other @( @@K@c@ 'Income before income taxes| @@ 'Provision for income taxesV\o%'Income before minority interest @ @1'Minority interest in losses of subsidiariesZG'Income before cumulative effect of change in accounting principle: @X @E'Cumulative effect of change in accounting principle, net of tax^'Net income @ @T'Earnings per share before cumulative effect of change in accounting principle: 'Basicg  'Diluted "'Earnings per share: - Note 9 'Basic  'Dilutedg' 'Dividends per share['The accompanying notes are an integral part of the consolidated financial statements.2'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIESK'CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)7'FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001'(Dollars in thousands) ^Total^Retained Earnings3^Accumulated Other Comprehensive Income (Loss)^Deferred Compensation!^Additional Paid in Capital^Common Stock^Preferred Stock^Treasury Stock'Balance at April 1, 2002 y@@0"h@ 'Net incomed>d>E'Unrealized loss on investment securities net of $13 tax benefit;'Foreign currency adjustment net of $170 tax liability "254 'Total comprehensive income:@'Deferred compensationxx'Cash dividendsll+'Additional costs for equity offering+'Tax benefit on stock option exercises'Treasury stock:'Purchase of 54,732 sharesff'Sales of 245,054 shares"-3'Conversion of preferred stock to common stock,,'Balance June 30, 2002`Ǡ@@2@ "$ -'Balance at April 1, 2001@@ @ 'Net incomeddG'Unrealized loss on investment securities net of $17 tax liability449'Foreign currency adjustment net of $144 tax benefit "216 'Total comprehensive incomee'Deferred compensationXX'Cash dividends>>+'Tax benefit on stock option exercisesNN'Treasury stock:'Purchase of 3,640 shares^^'Sales of 28,520 shares"-'Balance June 30, 2001@@r  @ Z5'FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001'(Dollars in thousands) ^Total3^Accumulated Other Comprehensive Income (Loss)^Deferred Compensation!^Additional Paid in Capital^Common Stock^Preferred Stock^Treasury Stock^Retained Earnings 'Balance at January 1, 2002@<@@@v~" @ 'Net income @ @E'Unrealized gain on investment securities net of $32 tax benefit "(48);'Foreign currency adjustment net of $166 tax liability" "248 'Total comprehensive income @'Deferred compensation'Cash dividends/'Sale of 6,210,000 shares of common stock@@+'Tax benefit on stock option exercises'Treasury stock:'Purchase of 55,345 sharesRR'Sales of 272,634 shares3'Conversion of preferred stock to common stock,,'Balance June 30, 2002`Ǡ@@2@ "$ - 'Balance at January 1, 2001q@@@j! @ ۹'Net income @ @G'Unrealized gain on investment securities net of $59 tax liability8'Foreign currency adjustment net of $43 tax benefit~~ 'Total comprehensive income @'Deferred compensation``'Cash dividends~~+'Tax benefit on stock option exercises  'Treasury stock:'Purchase of 93,760 shares'Sales of 259,393 shares"-HZ'Balance June 30, 2001@@r  @ Z\'The accompanying notes are an integral part of the consolidated financial statements.2'IRWIN FINANCIAL CORPORATION AND SUBSIDIARIES6'CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)''For the Six Months ended June 30,'(In thousands) 'Net income  @  @Z 'Adjustments to reconcile net income to cash provided (used) by operating activities:4 'Depreciation, amortization, and accretion, net 0 t&5 'Amortization and impairment of servicing assets @ * @)'Provision for loan and lease losses @"/'Gain on sale of mortgage servicing assets'Gain from sales of loans*'Originated mortgage servicing assetsDŽ8'Originations and purchases of loans held for salepڒ5'Proceeds from sale of mortgage servicing assetsv @23D'Proceeds from the sales and repayments of loans held for sale @@/'Net decrease (increase) in trading assetsXy5'Net (increase) decrease in accounts receivable @'Other, net'U@6'Net cash provided (used) by operating activities/@''Lending and investing activities:>'Proceeds from maturities/calls of investment securities:' Held-to-maturity' Available-for-sale('Purchase of investment securities:' Held-to-maturity"-Z ' Available-for-sale f ZK!'Net increase in interest-bearing deposits with financial institutions!"(5,280)!"(48,046),"'Net increase in loans, excluding sales""ٕ!#'Proceeds from sale of loans#v@#@$'Other, net$$7%'Net cash used by lending and investing activities%0%ϓ''Financing activities:)('Net (decrease) increase in deposits((@6)'Net (decrease) increase in short-term borrowings)).@,*'Proceeds from issuance long term debt*c@*"-;+'Purchase of treasury stock for employee benefit plans+R+P,'Proceeds from sale of stock for employee benefit plans and equity offering,@,`-'Dividends paid--~/.'Net cash provided by financing activities.{@.pƿ@-/'Effect of exchange rate changes on cash//:0'Net (decrease) increase in cash and cash equivalents0B00@61'Cash and cash equivalents at beginning of period1@1@02'Cash and cash equivalents at end of period2@2@84'Supplemental disclosures of cash flow information:"5'Cash paid during the period:6' Interest6@6@7' Income taxes727 9'Noncash transactions:6:' Conversion of preferred stock to common stock:  :"$ -\;'The accompanying notes are an integral part of the consolidated financial statements. 6Sheet1 6Sheet2 6Sheet3d_ Arial Courier NewArial    O4!*d"""dFM3FM3 PropertyWK3WK3 Property   ? ? 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